Westgold Resources Limited (ASX:WGX) made an offer to acquire Gascoyne Resources Limited (ASX:GCY) for AUD 110 million on September 30, 2021. Westgold Resources Limited made an offer to acquire Gascoyne Resources Limited for approximately AUD 130 million from Deutsche Balaton AG (DB:BBHK) on October 26, 2021. Under the terms Westgold's Offer is giving one Westgold Share for every four Gascoyne Shares.

Under the new terms Westgold's Offer is giving 3 Westgold Share for every 11 Gascoyne Shares. Westgold's proposed offer is subject to the merger between Firefly Resources Limited (ASX:FFR) and Gascoyne. The offer is subject to other conditions including 51% minimum acceptance condition, there being no regulatory action, no prescribed occurrences, No change of control rights, Third Party Consent and no material adverse change in respect of Gascoyne.

Westgold reserves the right to waive some or all of these conditions. The board has recommended shareholders are advised to take no action in relation to Westgold's Offer. .

Gascoyne Board believes the Offer from Westgold undervalues Gascoyne shares and does not represent a superior alternative for Gascoyne shareholders when compared to the Scheme Proposed by Firefly Resources. The Board therefore unanimously recommends that Gascoyne shareholders continue to take no action in response to correspondence from Westgold and to REJECT the Westgold offer. Westgold intends to lodge its Bidders Statement with ASIC commencing October 10, 2021.

Offer will run from October 29, 2021 to November 29, 2021. Gascoyne reiterates shareholders should TAKE NO ACTION in relation to the Offer. As of November 1, 2021, Supreme Court of Western Australia approved the Firefly Scheme and hence Westgold Resources has written to ASIC to seek the consent of ASIC to withdraw its Offer under section 652B of the Corporations Act 2001 (Cth).

There can be no guarantee that ASIC will provide such consent. If consent is given, Westgold considers that it may be given with conditions. Westgold will update the market in this regard in due course.

Canaccord Genuity (Australia) Limited acted as financial adviser and Herbert Smith Freehills as legal adviser to Gascoyne Resources Limited.